What to look for in a new business partner

What to look for in a new business partner




6 Essential steps before opening your doors, and your books, to potential investors

  1. Keep things tidy. Start-ups and young companies typically have multiple loans and elaborate contracts designed to help fund growth in the early days, for example, loans which are convertible into shares or even by granting an option to a landlord in return for a lower rent. If that’s you, take action now to consolidate your balance sheet.
  2. Maintain a clean shareholding structure. Where there are lots of “rats and mice” minority shareholders, there is potential for uncertainty and confusion for investors.
  6. Check who actually owns your fundamental means of production. If you’ve built a product, be extremely careful that you own the “building blocks” and/or have a valid license to use those components. In the case of open source software, are you within the license terms?

Samira Rhodes
